Government of Meghalaya

Budget Speech

2006 – 2007

By

Dr. DONKUPAR ROY

DEPUTY CHIEF MINISTER  
INCHARGE FINANCE

Friday 24th March, 2006

 

Mr. Speaker Sir,

I rise to present the Budget Estimates for the year 2006-2007 which is the last year of the Tenth Plan and the second year of the Award of the Twelfth Finance Commission.

1.

The State Government submitted a draft plan proposal of Rs.896.00 crore for 2006-07 to the Planning Commission. During the meeting between the Chief Minister and the Deputy Chairman of the Planning Commission, the State’s Plan size for 2006-07 was raised to Rs.900.00 crore. Since the budget estimates had to be framed and printed adequately in advance for being placed before this august House and the Planning Commission is yet to approve the sectoral allocations within the agreed Plan size of Rs.900.00 crore, the estimates today reflect annual plan provisions amounting to Rs.896.00 crore.

2.

When I presented the Budget Estimates for 2005-06 before this august House on March 24, 2005, I had mentioned that the Twelfth Finance Commission recommendations include the consolidation and rescheduling of Central loans contracted till March 2004 and outstanding as on 31st March, 2005, for a fresh term of 20 years at a rate of interest of 7.5 per cent, subject to the enactment of fiscal responsibility legislation by the States. The Government has accepted this recommendation and proposes to introduce a suitable legislation.

3.

Before I present the Budget Estimates for 2006-07, I propose, Mr. Speaker, Sir, to briefly reflect on the National and the State Economy, highlight some of the proposed programmes for the year and indicate the status of our present performance. Along with the budget estimates, I shall also be presenting a Vote On Account for covering expenditure during the first three months of the year 2006-07 for consideration of this august House.

NATIONAL ECONOMY

4.

The Union Budget present in the Parliament on 28th February, 2006 estimated a growth of the GDP at the rate of 8.1 per cent in 2005-06 with the manufacturing sector likely to grow at 9.4 per cent. With the focus on agriculture, the output of foodgrains is expected to reach 209.3 million tonnes, which is about 5 million tonnes more than in the previous year. Inflation, as on February 11, 2006 was 4.02 per cent. The investment rate has increased steadily from 25.3 per cent in 2002-03 to 30.1 per cent in 2004-05. Several indicators point to continued buoyancy of capital formation in the economy.

5.

In the Budgetary allocations of the Central Government for 2006-07, the North Eastern Region gets an allocation of Rs.12,041 crore which includes a sum of Rs.4870 crore for the implementation of flagship programmes such as Sarva Shiksha Abhiyan, Mid-day Meal Scheme, Rajiv Gandhi Drinking Water Mission, Total Sanitation Campaign, National Rural Health Mission, Integrated Child Development Services, National Rural Employment Guarantee Scheme and Jawaharlal Nehru National Urban Renewal Mission. The Ministry of Development of the North Eastern Region (DONER) has been provided Rs.1,350 crore representing an increase of 18 percent over the Budget Estimates of 2005-06.

STATE ECONOMY

6.

The Gross State Domestic Product (GSDP) at current prices which was estimated at Rs.4815.75 crore during 2003-04 rose to Rs.5263.08 crore during 2004-05 and is expected to rise further to Rs.5737.05 crore in 2005-06, representing an average increase of 9.0 per cent. However, the GSDP during the same period at constant prices (1993-94) was Rs.2878.96 crore during 2003-04 and rose to Rs.3052.28 crore during 2004-05 and expected to rise to Rs.3217.21 during 2005-06, indicating an average increase of 5.7 per cent.

7.

The Per Capita Income of the State at current prices of GSDP which was

Rs.20,082 during 2003-04 rose to Rs.21,668 during 2004-05 and is expected to rise to Rs.23,321 in 2005-06, registering an average increase of 7.8 per cent. At constant prices (1993-94), the Per Capita Income over the same period stood at Rs.12,006, Rs.12,566 and Rs.13,078 respectively indicating an average growth of 4.4 per cent.

8.

The share of the primary sector in GSDP both at constant as well as current prices during the period 2003-04 to 2005-06 has been estimated between 22.00 and 24.00 per cent. A similar trend is observed in the industrial sector with a contribution of 22.00 to 23.00 per cent during the same period. The tertiary sector continues to dominate the economy and its share has continued between 52.00 and 53.00 per cent over the period.

STATE FINANCES

9. The Annual Accounts of the State for the year 2004-2005 reflect the following position -

 

a.

The year opened with an opening deficit of Rupees one hundred forty five crore, twenty eight lakh (Rs.145.28 crore).

 

b.

Against a total revenue receipt of Rupees one thousand five hundred forty six crore, thirteen lakh (Rs.1546.13 crore), the total revenue expenditure was Rupees one thousand five hundred ninety six crore, thirty four lakh (Rs.1596.34 crore) resulting in a revenue deficit of Rupees fifty crore twenty one lakh (Rs.50.21 crore).

 

c.

Against the total revenue receipts and recoveries of Rupees one thousand five hundred sixty four crore, fifty nine lakh (Rs.1564.59 crore), the total revenue and capital expenditure excluding Public Debt was Rupees one thousand eight hundred seventy seven crore, eighty lakh (Rs.1877.80 crore), resulting in a fiscal deficit of Rupees three hundred thirteen crore, twenty one lakh (Rs.313.21 crore). The emerging position reflects deterioration in the fiscal position of the State during the year 2004-05 mainly on account of shortfall in transfer of plan assistance from the Centre.

d.

Against the fiscal deficit of Rupees three hundred thirteen crore, twenty-one lakh (313.21 crore), there was an interest payment of Rupees one hundred seventy seven crore, twenty-three lakh (Rs.177.23 crore), resulting in a primary deficit of Rupees one hundred thirty five crore, ninety eight lakh (Rs.135.98 crore).

10. The revised estimates for the year 2005-2006 reflect a deficit opening of Rupees two hundred eleven crore, ninety-one lakh (Rs.211.91 crore).

 

a.

Against an estimated revised revenue receipt of Rupees two thousand six crore, fifty four lakh (Rs.2006.54 crore), the estimated revised revenue expenditure is Rupees one thousand eight hundred seventy five crore, seventy one lakh (Rs.1875.71 crore), resulting in an estimated revenue surplus of Rupees one hundred thirty crore, eighty three lakh (Rs.130.83 crore). The Revenue surplus is anticipated on account of increase in State’s share in Central Taxes and Duties in accordance with the recommendations of the Twelfth Finance Commission.

  b.

Against the estimated total revenue receipts and recoveries of Rupees two thousand twenty six crore and fifty four lakh (Rs.2026.54 crore), the total revenue and capital expenditure excluding Public Debt is estimated at Rupees two thousand two hundred forty two crore, thirty five lakh (Rs.2242.35 crore), resulting in a fiscal deficit of Rupees two hundred and fifteen crore and eighty one lakh (Rs.215.81 crore).

c.

Against the estimated fiscal deficit of Rupees two hundred and fifteen crore, eighty one lakh (Rs.215.81 crore), an interest payment of Rupees two hundred and three crore, sixty lakh (Rs.203.60 crore) is anticipated resulting in a primary deficit of Rupees twelve crore twenty one lakh (Rs.12.21 crore).

11.

The Budget Estimates being presented today for the year 2006-2007, propose as follows:

 

a.

An estimated opening deficit balances of Rupees one hundred thirty three crore, ninety six lakh (Rs.133.96 crore).

 

b.

An estimated total revenue receipt of Rupees two thousand four hundred fifty eight crore, thirteen lakh (Rs.2,458.13 crore) against an estimated total revenue expenditure of Rupees two thousand one hundred seventeen crore, seventy six lakh (Rs.2,117.76 crore), resulting in an estimated revenue surplus of Rupees three hundred forty crore, thirty seven lakh (Rs.340.37 crore). The increase in revenue surplus in Budget Estimates of 2006-2007 as compared to those of 2005-06, is mainly due to the anticipated increase in the central transfer of funds as a result of the Twelfth Finance Commission Award. However, the revenue surplus is not to be understood as indicative of a comfortable financial position as the anticipated fiscal deficit is estimated at Rupees eighty five crore, sixty lakh (Rs.85.60 crore).

NON-PLAN BUDGET 2006-

12.

The Non-Plan Estimates for 2006-2007 envisage an outlay of Rupees One thousand four hundred and four crore, twenty seven lakh and twenty five thousand (Rs.1,404,27,25,000.00) which is 6.39 percent higher than the likely non-plan expenditure of Rupees One thousand three hundred nineteen crore, ninety lakh, thirty eight thousand (Rs.1,319,90,38,000.00) during the current year. All possible efforts have been made to adequately provide for normal maintenance and recurring expenses, amortization of debts and liabilities and maintenance cost for normalized projects. Fiscal measures to contain avoidable non-plan expenditure will continue, but critical and unavoidable segments of expenditure have been protected and sufficiently provided for. The amount proposed for some of the major departments in the Non-Plan Budget estimates of 2006-07 include Rs.141.08 crore for Police, Rs.138.69 crore for PWD, Rs.209.40 crore for Education, Rs.57.24 crore for Medical and Public Health, Rs.49.25 crore for Water Supply and Sanitation and Rs.20.14 crore for Agriculture.

PLAN BUDGET 2006-07

13.

The approved Tenth Plan outlay is Rs.3009.00 crore. The revised outlay for the current year i.e 2005-06 is Rs.718.00 crore. The approved outlay for the Annual Plan 2006-07 is Rs.900.00 crore, which is 25.35 per cent higher than the revised plan outlay of the current year. The budgeted outlay of Rs.896.00 crore includes a proposed outlay of Rs.16.25 crore for Special Grants under the Twelfth Finance Commission Award and Rs.30.00 crore for Central Assistance for Externally Aided Projects. The Annual Plan, 2006-07 accords priority to improvement and strengthening of the Infrastructure, besides giving due emphasis to Education, Health Care and Agriculture. These priorities are expected to be complemented further by the programmes launched by the Central Government for improvement of the Rural Infrastructure in a time bound manner.

IMPORTANT SECTORS AND DEPARTMENTAL PROGRAMMES

 

Now, I will dwell upon important sectors of the economy and departmental programmes and propose the budget allocations for the year 2006-07.

14.

The capabilities of Police have been adequately enhanced under the Modernization scheme of the Central Government and the State Police has done commendably well in the fight to contain militancy in the State. The Modernization Scheme provides logistic support to the police force in terms of housing, transport, communication, weaponry, computerization and forensic science. Meghalaya has now been conferred the category ‘A” status and will be entitled 100% Central Assistance under the Modernization scheme from 2006-07. The proposal for creation of a fifth battalion for the State will be pursued vigorously. A total outlay of Rs.144.39 crore (both Plan and Non-Plan) has been earmarked for the Police Department for 2006-07.

15.

Roads and Bridges are the most important infrastructure in the State. The total road length in the State is 7886 kms with a road density of 36 km/100 sq. km as on March 31, 2005 which is lower than the National average. During 2006-07, it is proposed to take up 89 kms. Of new road construction, 166 kms. under metalling and black topping, 70 kms for improvement and widening works and 848 Running metres (Rms) for construction of major and minor bridges. The land acquired for the Shillong Bye-pass has already been taken over and construction of the Bye-Pass has been entrusted to the National Highway Authority of India by the Ministry of Road Transport and Highways. Construction of major building projects such as the Meghalaya House at Mumbai, Jail Complex at Nongpoh and reconstruction of Meghalaya House at Russel Street, Kolkata will be taken up. The plan outlay of the Public Works Department during 2006-07 is proposed at Rs.112.13 crore as against the revised outlay of Rs.110.94 crore during the current year.

16.

Road Transport continues to be the major means of communication in the State. The State Government will continue to encourage and foster a healthy growth and development of road transport both in the public and the private sector. The Government will continue to provide financial assistance to the Meghalaya Transports Corporation and improve its functioning. Works for improvement and upgradation of facilities at Umroi airport are in good progress and efforts are being made to operationalize Baljek airport at the earliest. A plan outlay of Rs.3.50 crore is proposed during 2006-07 for the Transport sector.

17.

The peak power requirement in the State is of the order of 315 MW against the installed capacity of 185.20 MW. The Government has adopted a two pronged strategy to meet the deficit. One step has been to bridge the gap in power generation and second to increase capacity in the transmission sector and avail of state share of power available from the Central Sector Power Stations. In the context of rural electrification, a total of 3806 villages in the State have been electrified till December, 2005. The Government of India has also launched the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), to provide access to electricity to all rural households in a period of 5 (five) years. The Central Government will provide 90% capital subsidy towards the overall cost of this project. The Government proposes to avail of the funds under this project in all the districts of the State. Further 160 villages of the state are proposed to be electrified through Non Conventional Energy Sources with the financial assistance of the Central Government. A total amount of Rs.235.33 crore has been sanctioned for schemes under the Accelerated Power Development and Reforms Programme (APDRP) over the last five years period. These schemes are scheduled to be completed within 2006-07. As against a revised level of Rs.152.89 crore under the Power Sector during the current year, the plan outlay for 2006-07 is proposed to be Rs.242.35 crore.

18.

The Government will take due advantage of the Central Programmes for providing potable water supply to all non-covered and partially covered habitations by 2009. The State Government also proposes to cover all non-covered schools in the State by 2007. The implementation of Swajaldhar Programme has brought about better community participation in water supply projects in the rural areas of the State. Attempts are being made for augmenting the water supply to Shillong city from the present level of 7.50 to 11.30 million gallons per day (MGD) to meet the growing water demand. A scheme for improving the quality of water of municipal sources and integrating these sources with Greater Shillong Water Supply is likely to be completed by 31.12.2006. In addition, a project for sustainability of water sources of river “Umiew” for Greater Shillong WSS envisaging the construction of 8 silt detention dams has been sanctioned. The Total Sanitation Campaign envisaging community participation will be implemented. The revised outlay under State Plan during 2005-06 is Rs.43.30 crore. The outlay proposed for Water Supply and Sanitation during 2006-07 under State Plan is Rs.45.00 crore.

19.

To keep pace with rapid urbanization, schemes for improving and strengthening the urban infrastructure will continue with greater emphasis. The Central government has launched the Jawaharlal Nehru National Urban Renewal Mission for integrated development of infra-structural services in selected cities in the country on a mission mode. Shillong has been selected under the Mission. Other towns of the state will be covered under two other schemes called Urban Infrastructure Development Scheme for Small and Medium Towns and the Integrated Housing and Slum Development Programme. Preparatory steps for acquisition of additional 250 hectares of land for setting up of the New Shillong Township at Mawdiangdiang have been taken. The alignment for a link road connecting the existing city with the new township has been finalized and land acquisition proceedings will be initiated next year. The proposed plan outlay for the year 2006-2007 under the Urban sector is Rs. 30.00 crore, as compared to the revised outlay of Rs. 17.25 crore during the current year.

20.

The Government continues to accord priority to Education and is committed to provide elementary education to the children in the age group of 6 to 14 years through the Sarva Shiksha Abhiyan (SSA) in accordance with the Constitutional directive. Through this intervention, the Government has also been able to ameliorate the problems of the teachers and provide them with the basic requirements necessary for a conducive learning atmosphere apart from provision of incentives for the children to reduce the rate of drop-outs. As training of teachers plays a crucial role in the educational process, in-service untrained elementary teachers are proposed to be covered during 2006-07. Government will continue to provide the State share for implementation of the Total Literacy Campaign and the Post Literacy Project in the State. An amount of Rs. 73.00 crore has been proposed under Plan for Education during 2006-07.

21.

To achieve the ultimate goal of “Health for All” the Government will continue to emphasis on the preventive, promotive and rehabilitative aspects of Health care services. The National Rural Health Mission (NRHM) with the aim of ensuring health care, particularly to poor and downtrodden, will be implemented in the State. Other Centrally Sponsored Schemes like National Family Welfare Programme, Pulse Polio Immunisation Programme, Reproductive and Child Health Programme, National AIDS Control Programme, National Revised T.B. Control Programme, National Anti-Malaria Control Programme and the National Leprosy Control Programme will continue to be implemented as envisaged by Government of India. The Government will continue to provide thrust to the expansion and consolidation of Health Care infrastructure such as Community Health Centres (CHCs), Public Health Centres (PHCs) and Sub-Centres. The plan outlay proposed under the Health sector for 2006-07 is Rs. 49.00 crore.

22.

The Government attaches great importance to the welfare of women and children, the disabled, the aged and the infirm and will continue to support NGOs engaged in various welfare activities with financial assistance. The ICDS Scheme will continue to be implemented and 2.31 lakh malnourished children and expectant and nursing mothers in the rural pockets of the State, and another 13,200 beneficiaries in the urban areas will be covered under the Supplementary Nutrition Programme. The Government will meet its obligations under The Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 through provision for uniform grants, book grants, conveyance and employment allowances and vocational training. A plan outlay of Rs. 38.50 crore is earmarked for Social Welfare and Nutrition during 2006-07 which is 12.93 per cent higher than the revised outlay of Rs. 34.09 crore during the current year.

23.

Agriculture and Horticulture play an important role in the economic life of the people of the State and are, therefore, given high priority. The production of foodgrain is expected to increase to 2.59 lakh tonnes in 2005-06 as against a total production of 2.45 lakh tonnes during 2004-05. The State also offers an excellent climate for Horticulture and Floriculture. Horticulture crops like Pineapple, Banana, and Papaya have registered significant increase in the area coverage as well as production. Tea cultivation has now been extended to all the seven districts of the State. Interventions made on Strawberry cultivation and Rose project in Ri Bhoi District and Anthurium in East Garo Hills District under the Technology Mission for Horticulture Developpment deserve special mention. Attempts will be made to enhance the command area under irrigation to complement the natural endowments that the State is so richly blessed with. In order to mobilize additional resources, it is proposed to realized minimal water rates from the beneficiaries of the command areas through the Water Users’ Associations and entrust them with the maintenance and operation of the projects. The total plan investment in the agriculture and irrigation sector during 2006-07 is proposed at a level of Rs. 35.46 crore as against a revised outlay of Rs. 28.83 crore during the current year.

24.

Efforts will be made to improve the livestock, increase production and strengthen animal health care. Government will try to enhance production of eggs, meat and milk by encouraging people’s participation in the development of animal husbandry activities in rural areas and creating enabling infrastructure to assist interested entrepreneurs in taking up commercially viable activities. While treatment & vaccination of animals and birds including supply of medicines have been provided free of cost, it is proposed to introduce registration fees in a few selected Veterinary Hospitals in a phased manner in order to inculcate a sense of responsibility in respect of animal health care among the farmers and earn some revenue for the maintenance and upkeep of the units. The Plan outlay for this sector for the year 2006-07 is proposed at Rs. 10.90 crore as against a revised outlay of Rs. 9.10 crore during the current year representing an increase of 19.78 per cent.

25.

Our annual consumption of fish is around 11,000 Metric tonnes, of which only 5,200 Metric tonnes is produced in the State. The Thousand Ponds Scheme for generating income and employment for rural youths in the State through fish farming is being implemented and will be continued during 2006-07. The scheme envisages a back-ended subsidy of 75% and a loan component of 25%. The Government will continue its efforts to encourage pisciculture in order to create new water bodies by utilizing wastelands which are unfit for agriculture and to provide self-employment opportunities to the people of the State. The revised sectoral outlay for the Fisheries sector during the current year is Rs. 3.90 crore while the proposed plan outlay for 2006-07 has been fixed at Rs. 4.40 crore registering an increase of 12.82 per cent.

26.

The focus of the Department of Soil & Water Conservation will continue to be on Jhum Control as well as Watershed Management Schemes. It is proposed to bring an additional 1263 hectares under land development, Afforestation and water conservation, an additional 750 hectares under erosion control works and undertake construction of 150 water harvesting ponds during 2006-07. The plan outlay under the Soil and Water Conservation sector during 2006-07 is proposed at Rs. 11.00 crore.

27.

The Government will continue to enlist the co-operation of the Autonomous District Councils and the community at large for complying with the Hon’ble Supreme Court directive banning unregulated felling of trees and operation of unlicensed wood-based industries. 73 Joint Forest Management Committees covering 15,000 households have been formed and Forest Development Agencies have been established in all the seven Districts of the State. During the current year i.e. 2005-2006, a total area of 4,040 hectares has been brought under plantation and 7.70 lakh tree saplings have been distributed to members of the public and institutions. The plan outlay for 2006-07, under the Forestry sector is proposed at Rs. 23.80 crore which is 66.20 per cent higher than the current year’s revised plan level of Rs.14.32 crore.

28.

The economic activities of the Cooperatives in the State have now diversified to areas like handloom & weaving, village industry, multipurpose dairy, poultry, fishery, piggery, transport, housing, processing, women and thrift/mutual benefit activities. In order to bring about speedy and meaningful development and growth of cooperatives in the rural sector, Government has extended Integrated Cooperative Development Project (ICDP) activities to all the seven Districts of the State. An Action Plan for the revival of cooperative credit structure is on the anvil and is expected to be implemented in 2006-07. As against a revised outlay of Rs. 4.00 crore for the Cooperative sector during the current year, a plan outlay of Rs. 5.15 crore has been proposed during 2006-07, representing an increase of 28.75 per cent.

29.

With a view to reducing poverty, increasing the income and improving the quality of life of the rural people of the State, Centrally sponsored programmes like Swarnjayanti Gram Swarozgar Yojana, Sampoorna Grameen Rozgar Yojana and Indira Awaas Yojana continue to be implemented in the State. The National Rural Employment Guarantee Act, 2005 passed with the objective of enhancing the livelihood security of the people in rural areas by generating wage employment through works that develop the infrastructure base is scheduled to be implemented in South and West Garo Hills Districts of the State. The Chief Minister’s Special Rural Development Fund, the Special Rural Works Programme and the construction of Rural Roads Programme will continue to be implemented. The plan outlay on the Rural Development sector for 2006-07 is proposed at Rs. 70.97 crore which is 8.16 per cent higher that the revised level of Rs. 65.61 crore during the current year.

30.

The Government will continue to accord priority to the development of industries in the State. 26 industrial undertakings have been set up in the Industrial areas at Umiam and 77 undertakings have been set up at the Export Promotion Industrial Park at Byrnihat and the declared schedule area at Khanapara. These undertakings have generated about 6,500 job opportunities based on local resources. The Small Scale Sector has generated 28,286 employment opportunities through 5,101 registered industrial units in the State. The Prime Minister’s Rozgar Yojana will continue to be implemented in the state. The Meghalaya Khadi and Village Industries Board will continue to extend financial assistance under the Rural Employment Generation Programme with margin money to the extent of 30 per cent of the project cost. The Meghalaya Handloom and Handicrafts Corporation will continue providing a viable platform for popularisation, marketing and sale of local handloom and handicraft products. The plan outlay for 2006-07 for Industries is proposed at a total amount of Rs. 19.77 crore which represents an increase of 23.87 per cent over the revised outlay of Rs. 15.96 crore during the current year.

31.

A total of 466 hectares of plantation under Mulberry, Eri and Muga will be developed during 2006-07. This is expected to bring a corresponding yield of 67,000 Kgs of Mulberry Cocoon, 4.17 lakh Kgs of Eri Cocoon and 919.54 lakshs of Muga Cocoon. The Catalytic Development Programme of the Central Silk Board, the Central Sector Schemes of Integrated Handloom Training Programme, Mahatma Gandhi Bunkar Bima Yojana, Workshed-cum-Housing Scheme, Health Insurance and Swarozgar Credit Card will also be continued during 2006-07. The plan outlay under this sector for 2006-07 is proposed at Rs. 4.00 crore which is 37.93 per cent higher than the revised outlay of Rs. 2.90 crore during the current year.

32.

The Government will exploit the tourism potential for the economic prosperity of the people of the State. Eco tourism, adventure tourism and cave exploration will be encouraged. Our focus in the ensuing year will be on creating proper facilities at the tourist locations. The Meghalaya Tourism Development Corporation will be suitable assisted to make it a viable organisation. A plan outlay of Rs.2.60 crore has been proposed for the Tourism sector during 2006-07 which represents an increase of 30 percent over the revised outlay of Rs.2.00 crore during the current year.

33.

The Government has taken important initiatives to facilitate the growth and development of the Information Technology Sector. An IT Society has been established and registered for effective implementation of IT related ventures and proposals. During the current year, priority has been accorded to establishment of the Software Technology Park in Shillong. Incentives to IT entrepreneurs for setting up business in IT Park will be provided and hardware/software infrastructure augmented. Projects on SWAN and NeGP are being implemented and preparation of an IT Master Plan is in progress. A plan outlay of Rs.5.00 crore has been proposed for the Information and Technology sector during 2006-07.

34.

The Mining and Geology sector will continue to focus on identifying the State’s mineral resources and their scientific exploitation. An amount of Rs.57.39 crore has been collected as revenue from major minerals upto December, 2005, and the anticipated collection during 2006-07 is estimated at Rs.88.99 crore. The plan outlay for this sector during 2006-07 is proposed at Rs.1.90 crore.

35.

Efforts to preserve and promote the rich cultural heritage of the State will continue. Steps are being taken to expand and develop the existing Museums. The Intensive Art and Culture Development Programme and the scheme for providing financial assistance to registered voluntary cultural organizations will be continued. An outlay of Rs.6.50 crore is proposed for Art and Culture during 2006-07.

36.

The coverage of Public Distribution System (PDS) includes 1, 27,400 BPL families, 55,600 families under the Antyodaya Anna Yojana and 2,66,078 APL families. Efforts are being made to cover 14,600 families under the Antyodaya Anna Yojana under the third expansion programme. The Government will continue to implement the Annapurna Scheme in respect of 9200 beneficiaries and there under distribute rice free of cost to the indigent old age persons not covered under the National Old Age Pension Scheme. In conformity with the instructions of the Government of India, rice at BPL prices is now made available to 14,260 inmates in various students hostels in the State at a scale of 15 Kgs per inmate per month. Emphasis on educating the consumers, especially in the rural areas, about their rights and responsibilities will continue. An amount of Rs.1.50 crore has been earmarked during 2006-07 under the state plan.

37.

The Border Areas Scholarship Schemes will continue to provide assistance to students from the border villages. 2187 students are covered under the scheme during the current year. Government proposes to enhance the coverage to include 2500 students hailing from the notified border areas during 2006-07. Road and ropeway communication, electrification, construction of school buildings, community halls, market stalls, footpaths, footbridges along with creation of other infrastructure will continue. Schemes under Special Central Assistance (BADP) being implemented by the local committees will be given added impetus during 2006-07. As against the revised outlay of Rs.6.50 crore during the current year, the plan outlay on this sector for 2006-07 is proposed at Rs.8.00 crore.

38.

Steps will continue to be taken to expand the Sports infrastructure in the State. Construction of the Gymnasium-cum-Indoor Hall at the Jawaharlal Nehru Stadium Complex sanctioned by the North Eastern Council is making good progress. The Indoor Stadium at Nongpoh constructed at an estimated cost of Rs.10.36 crore was inaugurated in December 2005 and handed over to the Nongpoh Sports and Cultural Association for operation and management. Work continues on the 43 ongoing schemes in all the seven districts of the State. A plan outlay of Rs.10.00 crore has been proposed in the Budget Estimates, 2006-07 for this sector.

39.

State Government will continue to work closely with the Autonomous District Councils and support them in their endeavour to fulfill their responsibilities in safeguarding the rights and interests of the tribal population. A plan outlay Rs.6.05 crore is proposed as aid to the Autonomous District Councils for 2006-07.

40.

The Information & Public Relations sector will continue to strive for proper dissemination of information about the various developmental programmes of the Government. The Government has taken steps to implement the Right to Information Act, 2005 in a sincere and transparent manner. The State Chief Information Commissioner has been appointed and all financial support will be extended to make his establishment fully functional. A plan outlay of Rs.3.00 crore for 2006-07 is proposed for Information & Public Relation which is 74.41 per cent higher than the revised outlay of Rs.1.72 crore during the current year.

41.

Government will implement the various labour laws for the benefit of the workers and endeavour to augment the infrastructure in the various Industrial Training Institutes for skill upgradation and coverage of more number of trainees. An amount of Rs.2.75 crore has been proposed for Labour and Employment during 2006-07 under the state plan. 

BUDGET ACTUALS 2004-05

42.

The year 2004-05 opened with a deficit of Rupees one hundred forty five crore, twenty seven lakh, sixty five thousand, five hundred forty three (Rs.145,27,65,543). While the total receipts during the year, including receipts under Public Accounts, amounted to Rupees five thousand two hundred thirty crore, fifty three lakh, twenty seven thousand seven hundred sixty one (Rs.5,230,53,27,761), the corresponding expenditure was Rupees five thousand two hundred ninety seven crore, sixteen lakh, forty three thousand, five hundred fourteen (Rs.5,297,16,43,514) and after taking into account the opening deficit, the closing deficit was Rupees two hundred eleven crore, ninety lakh, eighty one thousand, two hundred ninety six (Rs.211,90,81,296).

REVISED ESTIMATES 2005-06

43.

The revised estimates for the current year reflects an opening deficit of Rupees two hundred eleven crore, ninety lakh, eighty one thousand, two hundred ninety six (Rs.211,90,81,296). While the revised estimated receipts for the year, including receipts under Public Accounts, are likely to amount to Rupees fourteen thousand nine hundred fifty three crore, twenty six lakh, sixty five thousand, one hundred (Rs.14,953,26,65,100), the corresponding expenditure is likely to amount to Rupees fourteen thousand, eight hundred, seventy five crore thirty one lakh, seventy one thousand, three hundred (Rs.14,875,31,71,300) and after taking into account the opening deficit, the closing deficit of Rupees one hundred thirty three crore, ninety five lakh, eighty seven thousand, four hundred ninety six (Rs.133,95,87,496) is anticipated.

BUDGET ESTIMATES 2006-07

44.

The estimates envisage an opening deficit of Rupees one hundred thirty three crore, ninety five lakh, eighty seven thousand, four hundred ninety six (Rs.133,95,87,496) and total receipt, including receipts under Public Accounts, of Rupees fifteen thousand three hundred eight crore, seventy six lakhs, forty nine thousand (Rs.15,308,76,49,000) against a corresponding expenditure,including expenditure on Public Accounts, of Rupees fifteen thousand two hundred fifty four crore, sixty eight lakh, seventy eight thousand (Rs.15,254,68,78,000) and after taking into account the opening eight lakh, sixteen thousand, four hundred ninety six (Rs.79,88,16,496) is anticipated.

ADDITIONAL RESOURCE MOBILIZATION

45.

I have briefly outlined the financial position of the state and the uncovered budgetary deficit anticipated during 2006-07. Mobilization of additional resources is necessary to support plan expenditure. It is proposed to strengthen and streamline the existing tax and non-tax revenue collection network with emphasis on plugging leakages and loopholes in the system and rationalizing existing levies and taxes on certain items apart from introducing user charges for public services in specific sectors. Further, it is proposed to take adequate measures for recovery of dues receivable by the State Government. It is also proposed to examine the feasibility of introducing new levies and appropriations as admissible under the law in order to generate additional resources during the year.

 

Sir, I am circulating ‘Budget at a Glance’ to give an overall picture of the budget estimates 2006-07.

 

With these few words, Mr. Speaker, Sir, I commend the Budget proposals for the esteemed consideration of this august House.

Khublei

 

Mitela

Jaihind.

Budget at a Glance

(In lakhs of Rupees)

RECEIPTS & EXPENDITURES

2004-2005 ACTUALS

2005-2006 Budget Estimates

2005-2006 Revised Estimates

2006-07 Budget Estimates

1. Revenue Receipt

15,46,12.78

19,75,12.76

20,06,53.95

24,58,13.00

2 (a) Tax Revenue

4,76,77.29

5,09,88.00

5,81,06.00

6,89,80.00

(b) From Centre

9,35,86.17

13,08,41.76

12,68,64.95

15,94,85.00

3. Non-Tax Revenue

1,33,49.32

1,56,83.00

1,56,83.00

1,73,48.00

         

4. Capital Receipt

3,18,47.50

3,07,48.94

3,47,82.63

3,41,66.04

5. Recoveries of Loans

18,46.28

20,00.00

20,00.00

20,00.00

6. Other Receipts

       

7. Borrowings and other liabilities

3,00,01.22

2,87,48.94

3,27,82.63

3,21,66.04

         

8. Total Receipts (1+4)

18,64,60.28

22,82,61.70

23,54,36.58

27,99,79.04

         

9. Non-Plan Expenditure

11,33,97.60

11,59,36.12

11,59,36.12

12,86,38.95

10. On Revenue Account of which

11,19,69.49

11,55,36.12

11,55,36.12

12,82,38.95

11. Interest Payments

1,77,22.94

2,03,59.69

2,03,59.69

2,12,87.92

12. On Capital Account

14,28.11

4,00.00

4,00.00

4,00.00

         

13. Plan Expenditure

7,43,82.10

10,82,98.70

10,82,98.70

12,77,34.04

14. On Revenue Account

4,76,64.30

7,20,34.97

7,20,34.97

8,35,37.03

15. On Capital Account

2,67,17.80

3,62,63.73

3,62,63.73

4,41,97.01

         

16. Total Expenditure (9+13)

16,32,26.52

22,42,34.82

22,42,34.82

25,63,72.99

17. Revenue Expenditure (10+14)

15,96,33.79

18,75,71.09

18,75,71.09

21,17,75.98

18. Capital Expenditure (12+15)

35,92.73

3,66,63.73

3,66,63.73

4,45,97.01

         

19. Revenue Deficit (1-17)

(-)50,21.01

99,41.67

1,30,82.86

3,40,37.02

         

20. Fiscal Deficit {(1+5+6)-16)}

(-)3,13,20.64

(-)2,47,22.06

(-)2,15,80.87

(-)85,59.99

         

21. Primary Deficit (20-11)

(-)1,35,97.70

(-)43,62.37

(-)12,21.18

(+)1,27,27.93